BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -In a pure command economy, there is no private sector, as the central government owns or controls all business. In a command economy, government officials set national economic priorities, including how and when to generate economic growth, how to allocate resources, and how to distribute the output.
Detailed explanation-2: -Capital goods are needed to produce consumer goods and services. Inflation increases the purchasing power of money. The availability of natural resources, labor, and capital goods are all that is needed to produce goods.
Detailed explanation-3: -Economists include government as a factor of production. When productive resources are used for capital formation, fewer consumer goods are produced. The United States has adequate resources to satisfy all the wants of all its people. Countries with a command economy are often dictatorships.
Detailed explanation-4: -Which statement is true about capital goods? They increase the production of goods.